ASSESSMENT AND ALLOCATION OF RISK FACTORS ASSOCIATED WITH PUBLIC PRIVATE PARTNERSHIP CONSTRUCTIONAL PROJECTS IN PAKISTAN

Abstract

Since early 1990s, Pakistan is formally working on public private partnership (PPP) procurement model for the uplift of her economic growth and provision of needed infrastructural facilities to the public. Initially telecom and power sectors only experienced PPP procurement but since 2004, popularity of PPP projects in various other sectors has been on the rise from government perspective due to current fiscal constraints, global economic recession, increased urbanization and urge for needed infrastructural facilities by the public. PPP Procurement is considered to be complex in Pakistan due to presence of diverse geographical and social behavior across the country and lack of PPP experience and knowledge by the government officials and private sector dealing with involvement of heavy capital over long duration with achievement of different interests by various stake holders. Therefore, for the successful implementation of PPP projects across country without disputes and losses during concession period, reliable and effective risk management is needed at all levels during initial phase of PPP project and very few empirical studies have been carried out to address this important issue.